RTCI Plastics Co. is choosing between teo hydraulic injection press models for its plastic production plant in Mississauga. The company hads MARR (Minimum Acceptable rate of Return) of 9%. Salvage value for both presses at the end of their service lives is expected at $75,000. Answer the following questions using the information in the table below.

	Press A	Press B
Down payment	$300,000	350,000
Annual instalment	$4,000	3,500
Maintenance/Repair Cost	$1,500 for the first year, increasing by $200/year thereafter	$1,000 for the first year, increasing by $150/year thereafter
Annual operating cost	$3,000	$2,000
Press service life	20 years	25 years

a) State the assumption needed in comparing mutually exclusive alternatives of different lives.

b) Using Annual Worth comparison, which injection press model should be selected?

c) Using Present Worth comparison, which injection press model should be selected?

d) Do both methods (Present Worth and Annual Worth) always yield to the same decision?

e) For a twenty-year study period, what salvage value for press B would make it a better choice?